So I have been searching for hours on this.
So I installed java 1.7 on my mac before I realized I wanted/needed to use 1.6. I have managed to change everything so that the command line sees version 1.6. My issue is that whenever I try to compile something in eclipse it is saying "Specified VM install not found: type MacOS X VM, name Java SE 7 [1.7.0_45]"
I tried to reinstall 1.7 to see if that would fix things. It hasn't.
I am in OSX 10.8
The solution for now was to blow away my workspace and check everything out again